There are mainly lenders and quick cash sources. A few notable are gold loans, educational loans, pension loans, car loans, personal loans, etc. Similarly, there are many lenders to choose from too.
Why choose a personal loan over other loans?
Among all other loans out there a Personal loan is different due to certain parameters, like its interest rate, flexible tenure, eligibility, nature of the loan, multi-usage, etc. but you must have knowledge of the Personal Loan Calculator.
What is the eligibility of a personal loan in banks?
The age limit should be from 21-60. Should have a contract of 1 year and must be working for 2 years before the head. HDFC Personal Loan is a good option to choose a personal loan.
What is the eligibility for a personal loan in NBFC?
- The business must be licensed under either the Companies Act of 2013 or the Companies Act of 1956.
- The minimum tenure is 12 months and the maximum 60 months.
- The borrower should be staying in the same residence address for at least 1 year.
- The self-employed person should be working in the same line of business for at least 2 years.
What is NBFC? Some of the Indian NBFC is?
An NBFC comes under the Companies Act, 2013 and will own a net fund of Rs. 2 crores. The deprivation of NBFC is a ‘non-banking financial company. The NBFC deals with the business of loans and advances, shares, bonds, debentures, and securities, that are provided by the government agencies or local authority, hire-purchase, and insurance business.
Advantages of NBFC over the bank for taking personal loans?
- As compared to the bank the NBFC has a lower cost and thus more profitable.
- It is much easier to apply for a loan in NBFC as compared to a bank.
- Registering an NBFC is easier than getting a bank license.
- Banks are more centric towards big business, whereas the NBFC is more concerned with a smaller business.
- The loan facility of NBFC is faster as compared to the banks. The banks are strict when it comes to giving loans, they go through many strict paper works before giving a loan.
- The credit score plays importance when it comes to taking loans from banks. If the credit score is low, then the application for the loan is denied.
- As the NBFC doesn’t have penalty clauses, loan repayment is easier as compared to banks.
Interest Rates:- A borrower always compares the rate of interest, before finalizing where to take. The lower the interest rate, the more people are attracted. An NBFC has a lower rate of interest as compared to the bank.
Quick Processing:- The process of loan is easier when it comes to the NBFC. As they have an indulgent set of eligibility criteria. Sometimes when the loan amount is huge, then the NBFC compromises with the interest rate.
Less Stringent Rules:- The NBFC has a lesser set of rules and restrictions as compared to a bank.
People Having A Poor Credit Score:- Usually, the bank doesn’t give loans to the candidate who has a poor credit score. But when it comes to NBFC, they provide loans to those people with low credit scores, but at a higher rate of interest as compared to the market rate.
Conclusion:- After considering the factors, advantages, and reasons for choosing an NBFC, one can decide they were to take the personal loan from. There are many helplines open to help you.
